By Lore Ramirez
Apr 17, 2024, 12:32 PM EDT
Last February, the House of Representatives approved a extension in the Child Tax Credit (CTC), known as the Tax Relief for American Families and Workers Act; which would be responsible for increasing the refundable amount for taxpayers during the coming years. Unfortunately, the project is still stalled in the Senate.
Keep reading to find out What will be the increase in the 2024 Child Tax Credit if the Tax Relief for American Families and Workers Act is approved? in the Upper House and the amounts it would have for the next few years.
Currently the Taxpaying parents and guardians can claim a credit of $2,000 per dependent, with a maximum of $1,600 refundable per child. The bill for the increase in the Child Tax Credit would increase the maximum refundable to $1,800 per child.
The Tax Relief for American Families and Workers Act also establishes gradually increase the maximum refundable amount per dependent for tax years 2023, 2024 and 2025, until reaching $2,000 dollars. With this, the maximum refundable amounts would be $1,800 dollars for 2023, $1,900 for 2024 and $2,000 for 2025. For 2024 and 2025 the charge would be adjusted according to inflation rates.
Why has the increase in the Child Tax Credit for 2024 not been approved?
The Tax Relief for American Families and Workers Act already has the green flag of the Lower House, but it has not yet been approved by the Senate, which is why the project has not come into force. Unfortunately for many taxpaying parents, a vote on the bill in the Senate has not yet been scheduled.
According to information shared by the New York Times, the above is due to the fact that the Upper House of Congress has rejected some points of the project, including the “retrospective review” that would allow taxpayers to use income from the previous year to increase the amount of the Child Tax Credit.
When could the increase in the CTC 2024 be approved?
Since the vote on the project has not been scheduled in the Upper House, yet There is no tentative date for the approval of the Tax Relief for American Families and Workers Act; However, since the tax season ended on April 15, many taxpayers have begun to wonder what will happen to their respective credits if the law is approved in the coming months.
Keep reading:
– How to qualify for the $1,600 Additional Child Tax Credit in 2024
– House votes to expand child tax credit and strengthen business tax breaks
– Child tax credits: what you can do if you still haven’t received your payment